Insurance in a Business

Insurance in a business is a way to protect your company against unexpected losses. These can include everything from property damage to employee theft, data breaches or potential lawsuits.

There are many different types of insurance available for small businesses, depending on your needs and risk profile. A licensed agent can help you determine what coverage is right for your business.

Business Owner’s Policy (BOP)

A Business Owner’s Policy (BOP) is a package of insurance policies that provides the coverages your business needs. These include general liability, property and business interruption insurance.

A BOP is a popular choice for small businesses, such as retail stores, restaurants and wholesalers. It combines the most essential coverages into one convenient policy and often offers better value than buying them separately.

A BOP can also provide a business with business interruption insurance, which helps pay rent or salaries while your company is unable to operate due to a covered loss or event. This insurance can also help you recover from an unexpected fire or other catastrophe that disrupts your business.

General Liability

General Liability insurance helps protect your business if you’re sued for bodily injury or property damage. It also covers your legal defense costs and pays for judgments and settlements.

You might need this coverage as part of a BOP or as a stand-alone policy. Your agent will help you determine how much and what types of coverage are best for your business.

A standard commercial general liability policy typically has limits of $1 million per occurrence and $2 million aggregate. It also has additional coverage options, such as product liability. These are designed to pay for lawsuits resulting from your company’s products, such as defective products or labeling errors.

Business Auto

Business auto policies help businesses protect themselves against claims resulting from an accident involving a business-owned or leased vehicle. They provide liability coverage, collision coverage and comprehensive coverage.

The most common types of businesses that need commercial auto insurance include food trucks, contractors and ridesharing services such as Uber and Lyft. If you own a landscaping pickup, a food truck or any other type of work-related vehicle, talk to your agent about a business auto policy.

Personal car insurance often excludes coverage for driving on business errands or for making deliveries, picking up supplies and other work-related activities. A drive other car endorsement can make these activities covered.

Business Owner’s Package (BOP)

BOPs are a popular option for many small business owners. They combine several key insurance policies with additional protection into one convenient package.

A BOP typically includes commercial property (buildings, equipment and inventory), liability, and business interruption coverage in a single policy. It also provides a number of optional add-ons, such as crime insurance and medical payment coverage.

These coverages are usually less expensive than buying each one separately. However, BOPs do not include some coverages that most businesses need, such as workers compensation insurance and commercial auto insurance.

Commercial Property

Commercial property insurance is a core coverage included in a business owners policy (BOP). It provides protection against losses to your buildings and the contents within them.

This includes your office, computer equipment, inventory, tools, furniture, and other assets. It can also cover items you borrow or lease from others.

The amount of coverage you can receive depends on the type of policy. Named perils policies offer limited coverage, while open perils policies have a greater range of risks covered.

Additionally, the policy can cover leased equipment and valuable papers and records that you store on your premises. It can also help cover your income if you cannot operate for an extended period following a loss.